HotForex: An Amazing Trading Application?

July 21, 2020
Brokers
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HotForex is one of the few trading applications that has gained a lot of popularity in recent times for its versatile account types and fair fee structure. The app offers stocks, ETF’s, CFDs and Forex pairs. Similarly, it offers a plethora of deposit and withdrawal options. HotForex also has a great demo account with good educational resources and the fact that you can start with $0 deposit means that it can be a great app for you to get started with trading.

We analyzed hundreds of data points relevant to the costs, benefits and features of trading with HotForex and scored our findings on a 10-point scale across 10 distinct categories.
Fees 8
Signup Process 10
Minimum Deposit 10
Ease of Use 5
Deposit & Withdrawal Options 10
Customer Support 7
Asset Classes 6
Referral Program 0
Demo Account & Educational Resources 8
Safety & Regulation 10
Total 74

Introduction

HotForex is an online broker established in 2010, which is regulated by the UK’s Financial Conduct Authority (FCA) and Cyprus’s Securities Exchange Commission (CySEC). It has clients in over 20 countries and offers assets like stocks, ETFs, CFDs and Forex for trading. It offers a plethora of accounts for different types of forex traders depending on their usage. The application has also received many positive reviews for its demo account that can help you trade different types of assets with paper money and instructional videos so you can get started with trading on the platform.

Pros & Cons

Let’s examine some of the pros and cons of using HotForex to see how the application may be of benefit to you.

Pros

  • Detailed educational material
  • Real-time stock data
  • Different accounts with different spreads that you can opt for depending on your trading propensities
  • Regulated and safe

Cons

  • Slow email Response
  • Limited asset options 
  • No active referral program
  • Outdated interface

Account Types

There are several types of accounts with HotForex that cater to different types of users. The key differences between them are the minimum deposits, the spreads they offer and the leverage you can access when trading on margin:

Account Type

Leverage

Micro Account

1:1000

Premium Account

1:400

Zero Account

1:200

Fixed Account

1:400

Vip Account

1:300

Auto Account

1:400

PAMM Account

1:300

As you can see there are various types of accounts. Micro Account,  allows you to use leverage up to 1:1000 which can allow you to earn a lot of money in trading. However, leverage also has a lot of risks as you can also lose a lot of money. The Micro Account can be used by beginners and professional margin traders alike because you can literally start trading with a deposit of $5.

The VIP and Zero Account can be used by professional forex investors for lower spread trades with spreads of 0 pips and 0.2 pips respectively. This can help professional traders in maximizing their profits.

In this review, we will focus more on the Micro Account than on the others, as it is the one that anyone can use to get started.

Here’s a breakdown of our 10 scoring categories, each scored out of 10 for a total of 100 points.

#1 Fees

With HotForex, the fees for trading forex are low, as commissions start from $0.03 USD per 1,000 lots. Apart from these commissions, there is also a range of spreads for trading that depend on the account type that you have. The table below looks at some of the spreads for the various accounts.

Account Type

Spread

Micro Account

From 1 pip

Premium Account

From 1 pip

Zero Account

From 0 pip

Fixed Account

Fixed Spread

Vip Account

From 0.2 pips

Auto Account

From 1 pip

PAMM Account

From 1 pip

As you would have seen from the table above, forex trading costs are low for the VIP account which has no spreads. The basic account starts with 1 pip which is not exactly the cheapest rate but competitive with other trading applications out there. 

Some good features are that there are no inactivity, deposit or withdrawal fees associated with your HotForex account. This is something really good because some applications have withdrawal and deposit fees that can really decrease the profit margins for beginners or people not making big trades. The aforementioned features allow the application to score a healthy 8/10 according to our scoring criteria. 

HotForex Fees Score: 8/10

#2 HotForex Signup Process

The signup procedure is completely online and instant. You can signup directly on HotForex‘s website. They will only ask for basic identification details and contact details. The account is opened within 3 minutes. However, the account validation process can take up to 48 hours. The easy and instantaneous procedure with which you can open an account allows HotForex to score a perfect 10/10 for this dimension of our analysis.

HotForex Signup Process Score: 10/10

#3 Minimum Initial Deposit For HotForex

As we mentioned previously, each type of account has a different minimum initial deposit. The table below shows the amounts for the different account types. 

Account Type

Minimum Deposit

Micro Account

$5

Premium Account

$500

Zero Account

$100

Fixed Account

$500

Vip Account

$20,000

Auto Account

$500

PAMM Account

$250

The initial deposit for opening a HotForex Micro Account is $5. The Micro Account is a really good option for anyone to get started with trading forex, stocks and commodities, as you can instantaneously open an account and get started with a small deposit. If you’re looking for a platform to quickly get started with trading, choosing Webull’s Micro Account is a solid choice.

You can also opt for other accounts depending on the volume of trading you do and the spread rates that you want to avail. For instance, if you are a professional trader you could get a Zero Account to trade with 0 pips.

HotForex Minimum Initial Deposit Score: 10/10

#4 HotForex’s Ease of Use

HotForex’s interface is reasonably attractive and helpful. You can see the trend of your asset along the passage of time. However, it lacks some analytical tools like predictive analysis tools available in some other brokers like Capital.com. However, it has a decent news feed feature that enables you to trade smartly by making an informed decision.

The fact that the app lacks quality predictive analytical tools, as well as the fact that the interface is not as detailed as some of the other brokers’, the final score is 5/10.

HotForex Ease of Use Score: 5/10

#5 Deposit & Withdrawal Options  On HotForex

This is an aspect in which Webull does very well. There are several ways in which you can deposit and withdrawal funds from your accounts with HotForex, namely:

  • Bank Transfer
  • Mastercard and Visa
  • Neteller
  • Union Pay

The only issue with these deposit and withdrawal options is that you must use the same medium for deposit and withdrawal. For instance, if you used bank transfer for deposit and you need to withdraw funds, you’ll have to use bank transfer as well. The final score based on the versatile set of options that users have is a perfect 10.

HotForex Deposit & Withdrawal Options Score: 10/10

#6 Customer Support At HotForex

Customer support is available via:

  • Phone 
  • email 
  • live chat (on their website)

The email response usually takes more than 24 hours. Telephone support is available for 24 hours on weekdays. However, due to the slow email and some limitations of the live chat features such as slow response at times only enable the score to be 5/10.

The score is low because of the pro-active tools by other competitive applications like Capital.com and Webull.

Hotforex customer service

HotForex Customer Support Score: 5/10

#7 Asset Classes At HotForex

HotForex offers the ability to trade 4 main asset classes:

  • Stocks
  • Forex
  • Commodities
  • CFDs

You can trade on several stocks, 49 currency pairs and several commodities like sugar, coffee and gold. Similarly, you can also purchase more than 100 CFDs. The variety of assets provided is slightly better than many apps that just provide Forex and CFDs. However, despite that the breadth of asset options is wide, the limitations of availability of assets in different countries enable the app to only get a score of 7/10 in our scoring system.

Related: Read our reviews for other financial strategies such as developing passive income streams that can help you retire early.

HotForex Asset Classes Score: 7/10

#8 Referral Program

Referral programs play an important role in making trading fun because you can use the platform with friends and learn more. However, there is no active referral program for HotForex and this also reduces the chance that you have to earn more funds. Hence, the score for this is 0.

HotForex Referral Program Score: 0/10

#9 Demo Account & Educational Resources

HotForex has a good demo account. It offers educational training videos on how to trade and become profitable. It also offers you a $100,000 paper trading balance to get started with trading and testing out your strategies. Some of the other features and training provided by the online platform are:

  • Tutorial Videos on how the platform videos
  • Educational training videos on trading
  • Webinars
  • Educational articles that help you in trading better and earning more.

The demo account offers some great features as elicited above. Not only do the educational resources train you to use the platform but also educate on you on how to trade properly. This helps the app in scoring 8/10 in this category.

hotforex edu

HotForex Demo Account & Educational Resources Score: 8/10

#10 HotForex Safety & Regulation

Hot Forex is regulated by UK’s Financial Conduct Authority (FCA) and Cyprus’s Securities Exchange Commission (CYSEC). Hence, this lends credibility to the platform as it is regulated by 2 strong regulatory authorities. This augers well for users because they can trade with the peace of mind that their broker is regulated and safe for them to work with because the entire system is working under a regulatory framework.

HotForex Safety & Regulation Score: 10/10

While researching 100+ of the world’s top brokers, we’ve noticed what works and what doesn’t from the customer’s point of view. That’s why our final test for any broker is to compare it to Capital.com, which scores 91/100 points across the 10 categories mentioned in this review.

HotForex vs. Capital.com

HotForex has a quick sign up process, which coupled with plenty of deposit and withdrawal options and an excellent demo account make it a strong broker. However, there are a few dimensions where Capital.com is much better and a more comprehensive alternative than HotForex.

Capital.com Is Easier To Use

Capital.com has a much more intuitive interface than HotForex. The interface of Capital.com allows you to have some great options to make informed decisions by using algorithms and market information. Similarly, Capital.com has some great charting tools that can help you in trading smartly and profitably.  

More Asset Classes

Capital.com also has some great asset classes like bonds, stocks, CFDs, ETFs, commodities and forex which provides it with a greater product portfolio than HotForex. Building a diversified portfolio is a great way to hedge risk and Capital.com gives you that option by providing you with a plethora of options.

Customer Support

Capital.com also has a very good customer support service with a quick email response, a dedicated account manager and an efficient live chat and telephone service. The dedicated account manager is a really good feature of Capital.com as it allows someone to advise you based on your preferences and investment horizon.

Hence, we recommend Capital.com as a much more holistic and comprehensive trading platform compared to HotForex

Related: If you want to learn more about this amazing broker, read this complete review of Capital.com.

HotForex In Summary

HotForex is a decent broker with a good trading platform where you can get started with trading right away. Similarly, it is regulated as well and provides a plethora of deposit & withdrawal options. A good feature in HotForex is that there is a range of accounts that you can choose to trade with depending on your spread and leverage requirements. If you are an experienced forex trader or someone looking to get started in trading, you may want to sign up with HotForex using the link below.

HotForex is a decent application that allows you to trade a myriad of assets. However, Capital.com has a wider asset breadth to provide you with more trading options. Similarly, Capital.com has some great customer support that will help you make the most of the trading platform. The interface of Capital.com is much more intuitive coupled with some great charting tools it can help you in trading profitably. Click the link below to join Capital.com for an educational and comprehensive trading platform.

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